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M/I Homes (MHO) Dips More Than Broader Market: What You Should Know

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In the latest market close, M/I Homes (MHO - Free Report) reached $109.88, with a -2.11% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.27%.

Prior to today's trading, shares of the homebuilder had lost 1.7% lagged the Construction sector's gain of 3.59% and the S&P 500's gain of 6.9%.

The investment community will be paying close attention to the earnings performance of M/I Homes in its upcoming release. It is anticipated that the company will report an EPS of $4.43, marking a 13.48% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.12 billion, indicating a 0.49% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17 per share and a revenue of $4.36 billion, representing changes of -13.75% and -3.29%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for M/I Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, M/I Homes is carrying a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that M/I Homes has a Forward P/E ratio of 6.6 right now. Its industry sports an average Forward P/E of 9.77, so one might conclude that M/I Homes is trading at a discount comparatively.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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